While expanding its operations into China, Louis Vuitton Moet Hennessy (LVMH) despite being one of the world’s top brand, was facing brand management issues. In order to give a brief overview of LVMH’s success it can be gathered that it is almost $13 billion worth group of companies with 1500 retail stores in about 60 countries and thus has a marked presence in Europe, United States and some parts of Asia. It was not until 1990s that LVMH finally decide to expand into China and South Korea. Only a few years later India was on the came under its list too. Although Asia accounted for 40% of the sales for the brand in 2004, LVMH was determined to capture the market’s competition. However recently LVMH is faced with a challenge is to protect its brand from getting diluted in the Asian market. Moreover the case highlights the other issues that surrounds the brand and ask the reader to analyze the feasibility for the brand to favor either private ownership or franchising.
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